Prices rose by 6.2% in the 12 months to February – the fastest rate seen for 30 years – as fuel, energy and food costs all surged.
However, the latest ONS data did not reflect the impact of the war in Ukraine as its survey concluded before Russian president Vladimir Putin ordered his troops to invade.
As such the impact is likely much higher and the Bank of England has already warned of potential double-digit inflation this year.
Grant Fitzner, chief economist at the Office for National Statistics, said:
“Inflation rose steeply in February as prices increased for a wide range of goods and services, for products as diverse as food to toys and games.
“Clothing and footwear saw a return to traditional February price rises after last year’s falls when many shops were closed.
“Furniture and flooring also contributed to the rise in inflation as prices started to recover following new year sales.
“The price of goods leaving UK factories has also been rising substantially and is now at its highest rate for 14 years.”
With the Spring Statement just hours away there is mounting speculation that the Chancellor, Rishi Sunak, could cut fuel duty, boost benefits and raise the threshold for national insurance as he tries to slow the impact of the cost of living crisis.
In advance of the statement, Conservative party chairman Mel stride told Radio 4’s Today programme: “It’s a very difficult situation and economically these external shocks that you are getting through energy prices, food prices, a war on the back of a pandemic means that unfortunately, any Chancellor in this situation cannot protect everybody from the consequences of that.”
He added that the Chancellor was spending about £9bn to help people facing energy prices increases, and cut VAT on hospitality during the pandemic.
“But there needs to be more done and that is what we really need to hear this afternoon when the Chancellor delivers his Spring Statement,” he said.
He concluded: “On fuel, on diesel and petrol, prices are going up through the roof and I think we can widely expect the Chancellor to reduce the level of duty there just to make it easier both for consumers, individuals, but also for businesses where clearly transportation costs are important.”
Jack Leslie, senior economist at the Resolution Foundation, said the jump is a ‘complete disaster’ for living standards
He said: “Another sharp rise in inflation last month offers a foretaste of the huge income squeeze coming this year, with inflation likely to hit at least 8% this spring – which could be the highest it’s been in 40 years – along with a second spike this autumn.
“This prolonged period of high inflation – which millions of people have simply never experienced before – is a complete disaster for living standards. It will mean pay packets continuing to shrink, along with vital income support such as Universal Credit and the State Pension.
“The Chancellor will need to set out a bold response to this cost of living crisis in his Spring Statement today, starting with ensuring that benefits keep pace with inflation over the coming 12 months, rather than shrink by £10bn as they are currently on course to do.”
The Spring Statement is due at around 12:30pm.
